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Until it is paid, what is the nature of the amount due to the deceased partner from the firm?

Answer and explanation

Correct answer: देयता (Liability)

The capital, share of profit, goodwill and other amounts due to a deceased partner represent a present obligation of the firm. Until payment is made, the amount is treated as a liability, generally through the deceased partner’s loan account. It is not an asset because the firm owes this amount rather than owns it. Exam tip: an unpaid amount due to a partner remains a liability until settlement.

Related tags

AccountancyPartnershipReconstitutionDeceased PartnerPartner LiabilityDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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